Coronavirus: American Airlines to hunt $12bn in state help

American Airlines has confirmed it’s going to search $12bn (£9.7bn) of monetary assist from the US authorities due to the affect of coronavirus.

Employees had been instructed in an e-mail this “would allow us to fly through even the worst of potential future scenarios”.

It stated it will imply “no involuntary furloughs or cuts in pay rates or benefits for the next six months”.

Staff may even be supplied “enhanced voluntary leave and early retirement options”.

Last 12 months the corporate made a $2.9bn revenue and returned $1.3bn to shareholders by way of dividends and buybacks, in accordance with Bloomberg.

Under the large $2.2tn coronavirus reduction invoice handed by the US Congress final week, $50bn was put aside for airways with half given as grants.

The different half will probably be supplied as loans in alternate for not furloughing workers till at the least 30 September.

American Airlines, the world’s greatest by passenger numbers, stated it hoped to be again to flying a full schedule by then.

“These funds are being distributed to ensure continuation of essential airline service and protect jobs. We intend to apply for these funds and are confident that, along with our relatively high available cash position, they will allow us to fly through even the worst of potential future scenarios,” stated the e-mail to workers from chief government Doug Parker and president Robert Isom.

Global airways have struggled as international locations worldwide have grounded nearly all of passenger flights since February as a part of efforts to halt the unfold of the coronavirus.

Another US airline, Delta, has additionally supplied voluntary depart of absence, and carriers exterior the US corresponding to Singapore Airlines have unveiled plans to lift funds by tapping share and debt markets with the backing of sovereign funding fund Temasek Holdings.